Today's best gossip from the set of Gossip Girl? An update on Blake Lively and Penn Badgley, whose characters, as we know, used to date on the show.

Blake and Penn have dated for a good length of time now (May 2008 was our first report on the couple, who may have been together prior to that).

Is it looking like this could be a (gulp) forever thing?

According to a close pal of Lively's, it very much is. The couple are expected to announce their engagement soon - at least their friends think they are.

There's a lot to love about Blively. Possibly for life!

Sunday is Badgley's 23rd birthday, and while some speculated they might have something else to celebrate then, engagement talk is premature.

A little.

''I think if November 1 was Blake's birthday, he might have surprised her with a ring,'' quipped the source. ''But my guess is over the holidays.''

Hard to believe one of our favorite Gossip Girl couples could be making it official. We certainly wouldn't object! You two kids have our blessing!

Below are two more sneak peeks of "The Grandfather: Part II," next Monday's episode of Gossip Girl. In the first - we hope you're sitting down - Blair Waldorf actually makes a new friend! That's not something to take lightly.

Here's Blair befriending a new girl the only way she knows how ...

Continue below for another clip from the episode, in which Serena and KC discuss the upcoming election party, and her current Archibald problem (follow the link for all the videos from the episode we've compiled so far) ...

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This week, we reported a developing story about the return of Robert John Burke to the Gossip Girl cast. But what does the return of Bart Bass actually entail?

Is he actually alive? Coming back only in flashbacks? Michael Ausiello of EW has dropped a hint in his spoiler Q&A today. See what you think of this tidbit ...

Q: What’s this I’m hearing about Bart Bass returning from the dead on Gossip Gir? this season? Is Chuck's father alive or is it a flashback?

A: Neither. Totally unrelated question: Are you a fan of A Christmas Carol?

Thoughts? Theories? Share!

You knew it was coming.

Best friends forever but frequent enemies ever since we've known them, the lovely Blair Waldorf and Serena van der Woodsen are totally feuding again.

Last episode's drama looks like nothing compared to what's to come in "The Grandfather, Part II." Neither girl is without fault ... or ready to back down.

We love them both, but if you're forced to take a side, who do you go with? We're curious to see where Gossip Girl fan opinion lies. Tell us below ...

Whose side are you on (if forced to pick)?

We already saw the first sneak preview of Blair and Serena at each other's throats. Now we have a second clip from Monday's "The Grandfather: Part II," featuring Dan and Olivia, who are getting along much better than B and S.

At least for the moment.

Clearly, O doesn't want Dan to see her appearance the previous night on Late Night with Jimmy Fallon. We don't know what, but she said something she wishes she hadn't. A guy in the NYU hall definitely watched it, at least.

Poor Dan. Always the last to know!

Below is a sneak preview clip from "The Grandfather: Part II." As the promos teased last night and this morning, the Blair-Serena rivalry has been rekindled.

That may be putting it mildly.

As you'll see in the first sneak peek at next Monday's Gossip Girl, the frenemies are at it again, looking to upstage one another in an all-too familiar fashion.

Who will prevail?

Here's a slightly longer version of the first promo we posted earlier today for next week's "The Grandfather: Part II." This could be one of the craziest in awhile.

Picking up where we left off last night, it looks like there's major, catty tension building between Blair and Serena, with Nate possibly caught in the middle.

Take a look at the promo below and tell us what you predict will happen - and what you hope to see transpire when Gossip Girl returns next week ...

Below are some photos for next week's Gossip Girl, "The Grandfather: Part II."

What does the Grandfather have planned for Tripp's election to U.S. Congress?

More importantly, what do Blair and Serena have planned for the election party? And what is what's-her-name doing with that video camera? Hmm.

Click to enlarge the Gossip Girl pictures below and share your comments ...

Welcome to the Gossip Girl Insider Round Table!

With our Gossip Girl forum abuzz with fan reactions, the Insider staff is here to discuss burning questions, funny quotes and hot moments from last night.

Gossip Girl topics from "How to Succeed in Bassness" include the two sides of J, a missing V, various plot holes and the major backstabbing yet to com ...

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1. What was your favorite Gossip Girl quote from the episode?

DANdy: Any time Dorota offers chess advice, while vacuuming Blair's dorm room, she'll earn this honor.

Gossip Guy: I loved all the Endless Knights lines throughout the whole episode but if I had to give an exact quote, it'd be the dialogue between KC and Serena at the end of all people. Serena claiming dating Roberts wouldn't be work and KC saying to call her after the second date. That tugged at my funny strings. Whatever those are.

Mister Meester: Blair's offer for Serena to help publicize a "members-only club SO exclusive it makes the SoHo house look like one of those dirty public schools with numbers for a name." So rough, in a hilariously condescending tone.

2. Do you prefer wholesome Jenny or Jenny the bitchy sellout?

DANdy: Can we see a photo of each option before deciding? I'll go with whichever Jenny wears less make-up.

Gossip Guy: Definitively wholesome Jenny. I've never been a huge fan (don't get me wrong, she's still 10,000 times better than V), but my favorite part about Jenny has always been her friendship with Eric. I can't believe she'd sell the poor kid out.

Mister Meester: It sucks to watch J ditch Eric for those losers, but watching her internal conflict is pretty compelling. At some point, the good Little J will prevail. Meanwhile, at least mean girl Queen J is making things interesting.

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Is Bart Bass somehow alive? Or returning to Chuck in a vision of some sort? At this time, details are sketchier than Bart's business practices, but it looks like the Bass patriarch is indeed coming back, according to E! Online.

They have been teasing the return of a dead TV father on an unknown show for weeks, and it looks like it's none other than good ol' Bart.

See what you make of these excerpts from website's spoiler Q&A today ...

Q: Will Carter be back on Gossip Girl? Is Georgina gone for good?

A: Friends at the CW say there are currently no plans to bring back Carter. Michelle Trachtenberg is starring in Mercy on NBC, so she looks otherwise occupied at the moment as well. We took your question to her, and she answered:

"Georgina has taken a little trip. She's gone off with a man she thinks is a Russian prince. But, by now you know that as Georgina goes, you never see the end of her. She always finds a way to come back and torment."

Bart Bass passed away in the middle of Season 2 ... or did he?

Q: Spill it! Who's the dead father who's coming back?

A: It's actually Bart Bass of Gossip Girl. How crazy is that?! A source says Robert John Burke (Chuck's dad) will be returning to the show in December, just in time to make it a very special Gossip Girl Christmas.

P.S. When I hinted that "two blondes will be atwitter" I was referring to Lily Rhodes van der Woodsen Bass Humphrey and Gossip Girl herself (the narrator voiced by Kristen Bell), who will certainly Twitter the news!

But, of course, Serena also would count.

Anyway, what do you think of this latest twist? Does Bart really come back or is it just a flashback or dream? Share your theories!